benefits is to be satisfied (1) SEGC must allow a claim in respect of an
obligation under a guaranteed securities loan to transfer securities or
security benefits (other than money) if the Board is satisfied that:
- (a)
- the
claimant is entitled to make the claim; and
- (b)
- the obligation is still undischarged to the extent of a particular number
of securities or security benefits of a particular kind (in this section
called the outstanding items ).
(2) Subject to subsection (3), if:
- (a)
- SEGC allows the claim; and
- (b)
- the claimant has:
- (i)
- under the guaranteed securities loan, paid as directed by the borrower; or
- (ii)
- for the purposes of the claim, paid to SEGC;
each amount (if any) required to be paid under the loan by the claimant upon
the discharge of the obligation;
SEGC must transfer to, or as directed by, the claimant, securities or security
benefits of the same kind and number as the outstanding items.
(3) If:
- (a)
- SEGC allows the claim; and
- (b)
- either:
- (i)
- paragraph (2)(b) is not satisfied; or
- (ii)
- paragraph (2)(b) is satisfied but the Board is satisfied that it is
not reasonably practicable for SEGC to obtain securities or security benefits
of the same kind and number as the outstanding items within the pre-cash
settlement period;
SEGC must satisfy the claim by paying to the claimant the amount that, as at
the time when the Board decides it is so satisfied, is the actual pecuniary
loss suffered by the claimant in respect of the failure to discharge the
obligation.
(4) In working out the amount of the actual pecuniary loss suffered in respect
of the failure to discharge the obligation, regard may be had to the cost to
the claimant of any securities or security benefits of the same kind as the
outstanding items that the claimant obtained because the obligation was not
discharged.
(5) In this section:
"pre-cash settlement period" means:
- (a)
- if the business rules of the claimant, as in force when the Board allows
the claim, prescribe a period, for the purposes of this section, in relation
to a class of claims that includes the claim—that period; or
- (b)
- otherwise—such period as the Board, having regard to all the
circumstances of the claim, considers reasonable.
Commonwealth Numbered Acts